Fed’s Dudley Reiterates Central Bank Makes Policy for U.S.

The globalized nature of the world economy calls for broader coordination between economic policy makers and other regulators, a top Federal Reserve official said Tuesday, in remarks that reiterated the U.S. central bank only pursues its actions in line with domestic considerations.

The official, Federal Reserve Bank of New York President William Dudley, used part of a speech to remind observers about the ultimate goal of U.S. monetary policy, even as he made no forward-looking comments about the U.S. economy or central bank rate policy. Dudley was responding to critics who argue the very strong stimulus provided by the Fed isn’t just in place to deal with moribund growth and job creation levels. His comments came from the text of a speech to be delivered before a conference held by the Swiss National Bank and the International Monetary Fund, in Zurich.

“Actions such as our purchase of U.S. government securities are driven exclusively by our monetary policy goals,” Dudley said. He added “these policy actions will not continue beyond the moment they become inconsistent with our dual mandate objectives.”

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